S&P lowers Premiere Global

S&P said it lowered its corporate credit rating on Premiere Global Services Inc. to B- from B.

The outlook is negative.

At the same time, the agency lowered the issue-level ratings on the company’s first-lien debt to B from B+. The recovery rating remains 2, which indicates an expectation of substantial recovery (70-90%; rounded estimate: 70%) in the event of a payment default.

S&P said the downgrade reflects an assessment of company’s ongoing weak operating performance combined with narrowing covenant cushion under its maximum total leverage covenant.

“Lower-than-expected earnings, stemming primarily from sharp declines in the audio conferencing market coupled with revenue declines from its software-as-a-service (SaaS) product have offset growth derived from recent acquisitions,” the agency said in a news release.

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